Report From ISG Reveals New True ESG Value Of Property Across UK Regions

Buildings in the London skyline ISG has launched its Sustainable Buildings Monitor: Redefining value report, which reassesses the true potential value of property by region and local authority, through a new sustainability focused framework.

ISG’s framework uses traditional financial and commercial metrics, alongside novel environmental and social metrics (including energy supply, emissions, quality of life and transport infrastructure), to create a comparative index of holistic potential property value across the regions and local authorities of the UK.

ISG engaged Centre for Economics and Business Research (Cebr) to develop the report, which seeks to demonstrate to developers, asset owners and local authority leaders that building ethically will unlock ESG (Environmental, Social and Governance) capital investment. Which, if located in certain regions, can attract investors and owners who still want to see a return on investment.

Key findings of the Sustainable Buildings Monitor: Redefining value report

  • While London stands as the overall best-performing region – notably Richmond upon Thames is the sole Borough in the Top 10 for environmental and social metrics, with some of England’s newest cities now jostling for the top spot
  • The South of England outperformed the North of England in the environmental and social metrics, and people and workforce metrics, but it fell behind in the financial and commercial metrics due to higher input costs.
  • A comparison of our holistic metrics, against a traditional metric, shows a UK filled with areas of untapped potential. Growth across regions is starting to mirror and reflect ambitious new location strategies from emerging industries that are an essential part of the UK’s growth strategy.
  • The North East, East Midlands and Wales look set to be the regions most primed for sustainable growth.
  • Using holistic metrics, the North East rises to become one of the areas with most opportunity – this is a significant regional opportunity for organisations looking to find aspiring locations beyond simple proximity to urban centres.
  • Wales came third for solely environmental and social metrics, outperforming all regions other than London and the South East.
  • The holistic potential property value index’s top ten performing local authority areas:
  1. City of London
  2. Cambridge City Council
  3. Southwark Council
  4. Tower Hamlets Council
  5. The City of Edinburgh Council
  6. Westminster City Council
  7. City of York Council
  8. Runnymede Borough Council
  9. Camden Council
  10. Newham Council
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Zoe Price, Global Chief Operating Officer of ISG, said: “The world has changed and so must our built environment, from homes to significant infrastructure. Inaction, or the sole pursuit of short-term gains, is no longer a viable commercial strategy, with ESG value now a necessity.

“Luckily, the opportunities to commit to goals that value society and environment are present throughout our industry. They just need to be seized. That’s why we produced this research, and we hope that it adds to burgeoning discussion of how to identify areas of the UK with the best opportunities to build differently and better, to add resilience to our communities and unlock skills and growth opportunities.”